In a bold move to tackle the complexities of online gambling, the Indian state of Karnataka is poised and ready to introduce a new legal framework that will set a clear distinction between luck and skill-based games. This initiative, aimed at protecting players from fraudulent platforms, is expected to come into force in the next couple of weeks, to further regulate legitimate gambling and bet endeavors in the country.

Amid growing concerns over unregulated online gaming and betting activities, the Karnataka government is preparing to introduce a new law aimed at tightening oversight of the digital gambling sector. Following a previous attempt that was struck down in court, officials are now drafting fresh legislation to balance industry growth with player protection. This move comes at a time when online platforms offering players the chance to win real money with no deposit required through the official NoDepositKings.io website and similar sites are gaining popularity across India.

Authorities say the new framework will focus on curbing illegal operations, promoting responsible gaming, and ensuring compliance with federal guidelines. Home Minister G. Parameshwara confirmed that the bill is expected to be tabled soon, reflecting a wider national push for tighter online gambling regulation.

A Historical Refresher

Karnataka’s online regulation journey has been tumultuous to say the least. Back in 2021, the state amended their Police Act which made all forms of gambling, including online betting, a recognized and non-bailable criminal offence. Nevertheless, this broad approach faced ample legal challenges, causing the Karnataka High Court to strike down any key provisions of the law in February 2022, deeming them unconstitutional.

Learning from their past experiences, the Indian state is now considering a model similar to the one adopted in Chhattisgarh, which prohibits games of chance while permitting games of skill. This approach seeks to promote industry growth while safeguarding player vulnerability.

The Chhattisgarh Model

As of March 2023, Chhattisgarh’s legislation distinguishes between games of skill and luck, with chance-based games being banned and skill-based games made legal. By adopting a similar model, Karnataka can ensure that legitimate skill-based platforms are able to operate without any legal complications. Nevertheless, the proposed legislation is expected to have several positive impacts, including:

• Growth – a well-defined legal landscape fosters innovation and attracts new investment to the gaming sector.
• Clarity - clear definitions will allow game developers to design gaming products that comply with local laws.
• Protection – by targeting illegal platforms, this new law aims to protect players from potential financial losses.
• Challenges – just like similar predecessors, this new law may face scrutiny when it comes to its constitutionality and execution.

Centralizing Regulation

While Karnataka’s efforts appear focused, the broader Indian regulatory framework remains relatively fragmented. The Ministry of Electronics & IT (MeitY) had proposed self-regulatory bodies for iGaming last year, but later dropped the plan in an unexpected backtrack from their initial proposal. As things stand, without centralized regulation, different states are able to adopt various approaches, which lead to massive inconsistencies within the industry, especially when compared to other countries like the UK and Malta which operate under a centralized gambling commission or authority that’s been entrusted to highly scrutinize the overall gambling industry from casino to sports bets.

A Balanced Future

Karnataka’s initiative to distinguish between games of chance and those of skill represents a positive step in the right direction if we’re looking for a nuance in regulation within the region. By learning from past mistakes as well as from other states’ models, Karnataka seeks to create a healthy regulatory framework that protects players while encouraging industry growth. Nevertheless, the success of this legislation will mostly depend on the clarity and enforceability with which it’s delivered, as well as its alignment with wider national policies.

As the gambling industry continues to grow and evolve, collaborative efforts between the state and central government, legal experts, and industry stakeholders will continue to shape the safe and sustainable gaming ecosystem we look forward to seeing in India.